Sugar supply is now far in excess of demand by about 100,000 tons, before the next sugarcane crop, according to the Ministry of Agriculture and Rural Development.
The Ministry revealed this information at a meeting to review sugar production in the Mekong Delta province of Hau Giang for the period 2012-2013.
The Vietnam Sugar Association has proposed to the Government to have flexible mechanisms to boost sugar exports and for authorized organs to strictly tackle sugar smuggling.
According to the Ministry, there are 40 sugar processing plants operating with total capacity of 134,200 tons per day.
They have so far processed 16.6 million tons of sugarcane to yield 1.53 million tons of sugar, an increase of 224,000 tons over the previous crop.
The sugar industry still faces a lot of difficulties. The biggest concern is that farmers cannot sell their sugarcane right after harvesting.
In addition, farmers have been forced to reap sugarcane early to avoid expected flooding in Hau Giang Province, which lowers the sugarcane quality and price.
Over the last three years, the sugar industry has remained quite stable in comparison to other agricultural sectors. Ninety-three percent of sugarcane cultivation has been contracted by processing plants in the country. Some businesses have also mapped out good policies to assist the development of sugarcane cultivation.
